Amazon agrees to pay over 47 billion yen settlement in refund policy lawsuit

It has been revealed that Amazon has agreed to pay $309.5 million (approximately 47 billion yen) to settle a class action lawsuit filed by a group of consumers alleging that the company failed to properly refund returned products.

Amazon to pay $309 million to US shoppers in settlement over returns | Reuters

https://techcrunch.com/2026/01/27/amazon-agrees-to-pay-consumers-309m-in-returns-policy-settlement/

In 2023, Amazon was sued by a consumer group for failing to provide refunds despite its 'free returns' policy and for charging customers who returned items within the deadline.

The company is also investigating the 'instant refund' process, which allows customers to receive a refund on the spot by dropping off their items at authorized Amazon return locations like The UPS Store or Whole Foods Market. While the process itself is free, it comes with a caveat: if Amazon doesn't receive the item within the specified time frame, customers may be charged again.

The plaintiffs alleged that on numerous occasions, they had taken their returned items to authorized return locations, received an 'immediate refund,' and were subsequently charged again despite clear evidence that they had followed the proper return procedures.

In this lawsuit, Amazon tried to fight it, explaining that 'customers accepted the terms of Amazon's return policy, including the possibility of being recharged if they did not return the product within the specified time period,' but agreed to a settlement in 2025. Furthermore, in January 2026, Amazon agreed to pay $309.5 million to a non-refundable fund set up for consumers who were not properly refunded.

As part of the settlement, Amazon will provide more than $600 million in individual refunds to customers, and has also agreed to provide $363 million in non-monetary relief to improve its return and refund processes.

While agreeing to the settlement, Amazon denies any wrongdoing regarding returns or refunds. A company spokesperson told Reuters, 'An internal investigation in 2025 revealed that in a small number of returns, refunds were issued before the consumer's payment was processed, or refunds were not issued because we were unable to verify that the correct item was returned,' and noted that the plaintiffs in this lawsuit are those rare cases.

Amazon also told TechCrunch, 'We began refunding returns that were the subject of litigation in 2025, and under the settlement agreement, we are providing additional compensation and refunds to affected customers.'

The plaintiffs' legal team explained that as part of the settlement, they are seeking payment of up to $100 million (approximately 15 billion yen) in legal costs.